Module Code: ABZ2019AC113
Module Title: Fundamentals of Financial Ratios
Delivered By: Zhang Y., Agnes A., and Barbara M.
Session Number: Session-5, Wednesday, July 3, 2019
Design Tools on Financial Ratios-PART I
The financial ratios are used to measure the financial health of an organisation. During an accounting period, an organisation may involve in many activities that alter the financial status of the organisation. Although going through those activities in detail is paramount to extract the exact status of the organisation, the summary of the financial health that is explained through financial ratios that are supported with additional details and analysis has become one of the fundamental needs among the interested people such as the creditors and the shareholders of the organisation. Oftentimes, these financial ratios are pooled into four major categories , namely liquidity, leverage, profitability, and marketability, based on what are explained through the ratios.
To facilitate the computation of these financial ratios to enhance the understanding of what is covered in
Fundamentals of Financial Ratios (ABZ2019AC113), few design tools are presented below.
iCurrent Ratio Version 1.0
Given the total current asset and the total current liabilities, iCurrent Ratio Version 1.0 determines the current ratio. The tool also plots the graph of current ratio versus current liabilities.
iQuick Ratio Version 1.0
Given the total quick current asset and the total current liabilities, iQuick Ratio Version 1.0 determines the quick ratio. The tool also plots the graph of quick ratio versus current liabilities.
iDebt Ratio Version 1.0
iDebt Ratio Version 1.0 determines the debt ratio given the total asset and the total liabilities.
iEquity Ratio Version 1.0
iEquity Ratio Version 1.0 determines the equity ratio given the total asset and the total liabilities.
iDebt-Equity Ratio Version 1.0
iEquity-to-Debt Ratio Version 1.0 determines the equity-to-debt ratio given the total asset and the total liabilities.
You have reached the end of today's session.
Good luck! Hope you enjoy.